Task force calls for guaranteed funds and elected mayors for local councils

A task force on local governance has called for guaranteed funding, directly elected mayors and stronger legal protection for local councils, warning that political and bureaucratic control by the provinces has undermined devolution in Pakistan, The Express Tribune reported.

The report, by the Task Force on Reforms in Local Governance in Pakistan, was released on Wednesday. It was convened by the BNU Centre for Policy Research (BCPR) with the Sanober Institute and met between January and June this year.

Devolution on paper only

The task force said no province had consistently met the requirement of Article 140-A of the Constitution to devolve political, administrative and financial authority to elected local governments. Lawmakers and provincial administrations, it said, were reluctant to give up control of development spending, staff and public services.

It blamed a “zero-sum mentality”, with parallel administrative structures, delayed elections and appointed administrators stopping elected councils from building any continuity.

Citing a World Bank report, it said local governments’ share of total government spending fell from about 10% in 2005 to around 4.7% in 2024. In Punjab, local government officials reportedly said salaries used up about 80% of the funds they received, leaving little for development.

Money first

The main proposals on funding are:

• A protected share: 30-40% of “the divisible pool” for local governments, released as a single grant at the start of each financial year. The report does not say clearly which pool the percentage would be calculated on.
• Fair formulas: transparent Provincial Finance Commissions, with allocations based on population, revenue and need rather than executive discretion.
• Own taxes: powers to assess, collect and keep property tax, capital gains tax on urban land, agricultural cess and local user charges.
• No parallel funds: development funds run by members of the national and provincial assemblies “should either be abolished or strictly repurposed to strengthen local governments”.

Elected mayors, real powers

The task force wants directly elected mayors and chairpersons, with clear rules and judicial review before any elected council can be suspended or superseded.

Big cities would get metropolitan corporations headed by elected mayors with authority over development agencies, water and sanitation bodies, mass transit and industrial estates. Rural districts would have elected chairpersons responsible for services such as rural roads.

Councils would run education up to matriculation, primary and secondary healthcare, water supply, sewerage, waste management, local roads and community welfare. Provinces would keep tertiary hospitals, higher education and inter-district infrastructure.

Province by province

• Punjab: the Punjab Local Government Act 2025 keeps provincial executive control over elected councils, rejects secret ballots above the union council tier in conflict with Article 226, and uses indirect elections for mayors.
• Sindh: provincial appointees have an effective veto over development plans proposed by elected councillors.
• Khyber Pakhtunkhwa: an earlier promise to route development spending through local governments was reversed.
• Balochistan: geographic spread, limited administrative capacity and a narrow revenue base add to the problems.

Changing the Constitution

The report proposes expanding Article 140-A with a schedule listing local government responsibilities, amending Article 160 so Provincial Finance Commissions follow a timetable similar to the National Finance Commission, and reviewing Articles 7 and 226 to make local elections easier to enforce. It also suggests a model law agreed through the Council of Common Interests, merit-based recruitment and the online publication of council budgets and performance data.

The report comes as Islamabad prepares for long-delayed local polls, after the Election Commission ordered them under the 2015 law.